Goldcorp Loses Takeover Bid

Resources | BCBusiness
The Canadian Malartic gold mine in Quebec is Osisko’s prize project

After a bitter fight for control of Toronto’s Osisko Mining Corp., Osisko announces a friendly offer from a pair of Toronto miners

Goldcorp. Inc.’s hostile takeover bid was thwarted today when Osisko Mining Corp. of Montreal announced its board of directors has approved a competing joint bid from Yamana Gold Inc. and Agnico Eagle Mines Ltd., both of Toronto. Osisko values the Yamana-Agnico Eagle bid at $8.15 a share, or a total of $3.9 billion. The agreement remains subject to approval of Sisko shareholders.
Vancouver-based Goldcorp launched its hostile bid on January 13, offering cash and shares valuing Osisko at $5.95 a share. At the time Osisko shares were trading at $5.17. Goldcorp remained steadfast in its valuation until April 10, when it raised its bid to $7.65 a share.
Osisko urged shareholders to resist Goldcorp’s offer, and on April 2 announced a complex agreement that would see Yamana Gold pay $929.6 million in cash and shares for a 50-per-cent stake in all Osisko’s mining and exploration assets, while a pair of pension funds would provide $550 million in cash. At the time Osisko said the agreement valued Osisko shares at $7.60. That April 2 offer was supplanted by today’s announcement of the joint offer from Yamana and Agnico Eagle.
Osisko shares closed at $7.94, up 7 per cent, on April 16, the day Osisko announced the Yamana-Agnico Eagle agreement.